The Classical Money Solution: How Returning to a Gold Standard Could Make Housing Affordable Again
When it comes to affording a home, the current housing market has many people feeling like they're stuck in a high-stakes game of real estate roulette. To buy low and sell high is often the mantra of savvy investors, but what if the system itself was stacked against ordinary buyers? The key might lie not with individual investing strategies, but with reforming the monetary system that underpins our economy.
Before 1971, when the US went off the gold standard, house prices were surprisingly stable – essentially flat over a period of 75 years. It wasn't until the country abandoned its precious metal-backed currency that home ownership became a major financial gamble. As one astute observer notes, this shift in monetary policy led to an "absolutely bizarre" surge in housing prices, driven more by speculation on land values than by any increase in building materials or square footage.
Fast-forward to today, and the situation is dire: house prices have skyrocketed, leaving many first-time buyers feeling priced out of the market. What's driving this trend? In part, it's the same logic that led to the 1970s' speculative frenzy on gold, silver, oil, and other commodities – a surge in demand for these assets has inflated their values, in turn fueling the housing boom.
The problem is that ordinary people are forced to play by the rules of this high-stakes game, with no guarantee of success. As one author writes, "every petty transaction has to be made like one is some high-roller investor." This is a far cry from the notion of homeownership as a fundamental right, where individuals can secure shelter without being saddled by crippling debt.
So what's the solution? Simply returning to a gold standard may not be enough. A more comprehensive approach involves reforming our monetary system to promote greater stability and affordability in the housing market. By adopting policies that prioritize long-term value over short-term speculation, we might yet create an environment where homes are accessible to all – not just those with deep pockets.
As one author puts it, "when prices are high, rent; when prices are low, buy." It's a simple strategy, but one that requires a fundamental shift in our economic mindset. By recognizing the role of monetary policy in shaping housing markets and advocating for a more classical system, we may yet unlock an era of affordable homeownership – where everyone can lay their head without breaking the bank.
When it comes to affording a home, the current housing market has many people feeling like they're stuck in a high-stakes game of real estate roulette. To buy low and sell high is often the mantra of savvy investors, but what if the system itself was stacked against ordinary buyers? The key might lie not with individual investing strategies, but with reforming the monetary system that underpins our economy.
Before 1971, when the US went off the gold standard, house prices were surprisingly stable – essentially flat over a period of 75 years. It wasn't until the country abandoned its precious metal-backed currency that home ownership became a major financial gamble. As one astute observer notes, this shift in monetary policy led to an "absolutely bizarre" surge in housing prices, driven more by speculation on land values than by any increase in building materials or square footage.
Fast-forward to today, and the situation is dire: house prices have skyrocketed, leaving many first-time buyers feeling priced out of the market. What's driving this trend? In part, it's the same logic that led to the 1970s' speculative frenzy on gold, silver, oil, and other commodities – a surge in demand for these assets has inflated their values, in turn fueling the housing boom.
The problem is that ordinary people are forced to play by the rules of this high-stakes game, with no guarantee of success. As one author writes, "every petty transaction has to be made like one is some high-roller investor." This is a far cry from the notion of homeownership as a fundamental right, where individuals can secure shelter without being saddled by crippling debt.
So what's the solution? Simply returning to a gold standard may not be enough. A more comprehensive approach involves reforming our monetary system to promote greater stability and affordability in the housing market. By adopting policies that prioritize long-term value over short-term speculation, we might yet create an environment where homes are accessible to all – not just those with deep pockets.
As one author puts it, "when prices are high, rent; when prices are low, buy." It's a simple strategy, but one that requires a fundamental shift in our economic mindset. By recognizing the role of monetary policy in shaping housing markets and advocating for a more classical system, we may yet unlock an era of affordable homeownership – where everyone can lay their head without breaking the bank.
the idea that returning to a gold standard is the solution to our housing affordability problems seems kinda far fetched to me, i mean think about it if we're on a gold standard, what's to stop speculators from buying up all the land and assets and just holding onto them waiting for prices to rise? 
It makes sense to me that if we had it back, house prices would be more stable and stuff wouldn't get so crazy out of control. I mean, think about it, when you're not betting on the stock market or whatever, people can just focus on finding a place to live without breaking the bank 
And yeah, it's all about the demand for assets like gold and oil, but what if we could balance that with making housing more affordable? 
. And what about all the other factors at play? Like interest rates and global trade deals? Can't we just address those instead of tweaking the monetary system? Not to mention, implementing a gold standard would probably lead to some pretty wild fluctuations in currency value 
.
. Same thing with houses now - prices are insane and regular folks are getting left behind. We need some real solutions not just band-aid fixes 
.
. It's like the whole system is rigged against ordinary people trying to buy a home. I mean, think about it - before we went off the gold standard back in 1971, house prices were actually pretty stable for 75 years straight! No speculation, no flipping houses for quick profits... just people buying homes because they wanted to live there, not because they were trying to make a killing.
. Maybe we should be looking at other solutions like rent control, increased building supply, and more affordable financing options... what do you guys think 